Fill and Sign the 1 Purchase and Sale Agreement Woodinville King County Form

- 1 - EXCHANGE AGREEMENT This Agreement, made as of the day of (insert month), 20___, between __________ (referred to herein as "Owner"), and ________________ (referred to herein as "Exchangor"). WITNESSETH: WHEREAS , the Owner has executed a contract for the sale of certain real property located in _______, _______ County, ________. The contract is attached to this agreement as Exhibit A. The Owner desires to exchange the property covered by the contract for other real property of like kind within the meaning of I.R.C. § 1031 and to qualify the exchange as a nonrecognition transaction under I.R.C. § 1031. WHEREAS , Treas. Reg. § 1.1031(k)-1(g)(4) provides for a "qualified intermediary" safe harbor for determining whether a transaction qualifies as a like-kind exchange. It is the desire of the parties to this Exchange Agreement to meet the conditions of this safe harbor. WHEREAS , the parties to this Exchange Agreement desire to enter into an exchange agreement as required by Treas. Reg. § 1.1031(k) 1(g)(4) and to otherwise qualify the contemplated transactions under the qualified intermediary safe harbor provided in the above regulations. THEREFORE , in consideration of the mutual promises herein contained, Owner and Exchangor agree as follows: FIRST A. Assignment of Contract Rights to Transfer Relinquished Property. Owner hereby assigns to Exchangor all of the Owner's rights in the contract attached as Exhibit A. The purpose of the assignment of the contract rights is for the Exchangor to be treated as acquiring
The right. To receive the property of the owner. B. Receipt of property. The exchange agreement provides that exchanger shall pay owner the agreed property upon exchange. The value of all property exchanged as provided in § 1031. The exchanger hereby agrees that he or she shall pay the agreed value of the real estate involved in the exchange, in compliance with § 1031. C. Transfer of rights. Upon completion of the exchange, the exchanger shall deliver to owner all the property given in the contract, with all interest and accrues arising after the date of the exchange. The exchanger hereby agrees that the purchaser will receive the property of the exchanged. D. Disposition of the property. Upon completion of the exchange, all property belonging to the parties shall be divided into equal parcels. Each parcel shall have the same value. All excess profits shall be paid as follows: (i) the exchanger shall, at the expense of the owner, pay the owner the value of any excess profits made on the property. (ii) the owner shall, at the expense of the exchanger, pay the exchanger the value of any excess profits over the value of the property. E. Disposition of profit. Upon completion of the exchange, the exchanger shall return to the owner all excess profits over the value of the property and pay the amount thereof. F. Exchange notice. The owner must send a written exchange notice to the exchanger within the prescribed period of time, by certified mail, return receipt requested, at which time the owner shall declare that the owner is in compliance with the requirements of §§ 1010(b), 1031(b) and (c) and requests that the exchanger complete a nonrecognition transaction under § 1031. G. No interestchargese . Upon completion of the exchange, the exchanger shall not incur any interest in the property exchanged to and including the date of the exchange, and shall have no right to enforce any claims under the contract as a result. H. No commission. Upon completion of the exchange, the exchanger shall have no commission on the amount of the transaction, and shall have a lien against the property exchanged for the amount of the transaction, and shall not have any right to enforce any claims against the property exchanged. 1. The agreement also provides as follows: 2. Pursuant to §§ 1032 and 1033 of this chapter, the following provisions apply in lieu of the nonrecognition transaction under § 1031. B. No provision orprovisions.s